352.1153 St 2/59: Telegram
The Ambassador in Spain (Hammond) to the Secretary of State
[Received March 9—3:46 p.m.]
37. American, British and French Embassies have received identical letter from Primo dated March 6 promising that Valuation Commission will in the future act judicially and will be instructed to deal reasonably and generously with all interests affected. Letter encloses new rules governing procedure of Valuation Commission which make great concessions. Companies’ representatives now allowed to bring legal and technical advisers before Commission and Commission is moreover instructed to consider proper valuation for entire going concern taking into account value of intangible assets. Wording regarding this point tricky but general principle of entire going concern value of expropriated interests is admitted for the first time.
[Paraphrase.] An appreciable advance has thus resulted. Representations by the American and French Embassies have been aided by the British and French press on Spanish policy, while the Spanish Government has been worried thereby. Since the letter’s wording is rather vague, I suggest the advisability of letting the Spanish Government know that the United States Government is not wholly satisfied. [End paraphrase.]
[Page 857]The three Embassies are now considering reply and expect propose a short letter simply taking note of Primo’s assurances and expressing the hope that new rule governing Commission will in practice assure all companies fair treatment which they were formerly denied. Instructions requested. Text of above serial number despatch in the pouch of today.25 Copies of this telegram mailed London and Paris.
- Infra.↩